Expenses repaid to volunteers working for your organisation are not taxed. You tax payments you make to your volunteers for their services using PAYE or as a schedular payment.
Sometimes you need to pay back the money volunteers spend doing their work for the organisation. This could be money they spend doing the work itself or travel to or from the work.
There is no tax to pay on the money you pay back to volunteers for expenses. These reimbursements are tax-exempt income if they are either:
- actual expenses
- a reasonable estimate of the likely cost.
You will need a reasonable estimate of the likely cost when:
- you've reimbursed for the expense before the work
- you do not know the actual expenditure but you can make a reasonable estimate of the likely cost.
Employers and employees can work out how much PAYE should be withheld from wages.Go to this tool